Gunman kills two Israeli soldiers

Israel launched a search for the gunman

Two Israeli soldiers were shot dead by a Palestinian gunman at a West Bank checkpoint, Israeli authorities say. Israeli ministers responded to the shooting by casting doubt on Monday's suggestions that an Israeli-Palestinian truce might be within reach.

"Right now it looks like talks about a cease-fire are premature," Justice Minister Tommy Lapid told army radio.

The incident came as the Israeli army began an incursion into the Rafah refugee camp, in the Gaza Strip.

Israeli authorities confirmed the operation in which at least eight Palestinians were reported injured.

Israeli military sources said their forces were searching for tunnels on the outskirts of the Rafah refugee camp which they allege are used to smuggle weapons.

In another development, the European Union has condemned the Israeli Government's plans for a barrier in the West Bank.

In a strongly-worded statement, it said the barrier was already cutting thousands of Palestinians off from essential services.

Checkpoint shooting

The two soldiers shot dead on Tuesday were the first Israelis killed by Palestinians since 24 October.

The gunman concealed his rifle in a rug - possibly a prayer carpet - before shooting at a group of Israelis on the Tunnel Road, outside the West Bank town of Bethlehem.

He fled to a nearby village, where Israeli troops began house-to-house searches.

The violence came a day after Israeli Prime Minister Ariel Sharon said that he had hoped to meet his Palestinian counterpart Ahmed Qurei "in the next few days" to resume talks on a US-backed peace plan, known as the roadmap.

The attack on the checkpoint, which links Jerusalem and the Gush-Etzion settlement bloc, happened just after 0600 (0400 GMT).

Bethlehem test

The BBC's Simon Wilson in Jerusalem says that it would be significant if the attackers fled into a part of Bethlehem, as the city is the only one under Palestinian control.

In the past, the Israelis have responded by retaking the city, our correspondent says.

In a separate development, the Israeli army began the big operation in the Rafah refugee camp.

Palestinian eyewitnesses said dozens of armoured vehicles and tanks backed by helicopters had entered the area in the early hours on Tuesday.

At least one building was demolished and there were sustained exchanges of fire with Palestinian gunmen.

The Israeli army confirmed the operation was taking place without giving any further details.